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Stellantis pauses work on next-gen Jeep Compass at Canadian plant

Luke Ramseth and Breana Noble, The Detroit News on

Published in Business News

Stellantis NV said Thursday it has paused work at its Brampton Assembly Plant in Ontario as the automaker reevaluates plans for its next-generation electrified Jeep Compass SUV that was scheduled to start production there early next year.

The carmaker said all work on the future compact crossover, which has included retooling and other preparations at Brampton, had halted effective immediately. It was not immediately clear if any temporary layoffs were underway, and the company did not specify how long the work pause would last.

Stellantis is in the midst of reassessing its strategies and product plans following the departure of CEO Carlos Tavares late last year, other leadership shakeups and uncertainty around President Donald Trump's efforts to stop EV policy supports and implement tariffs on goods coming from Canada and Mexico.

"As we navigate today’s dynamic environment, Stellantis continues to reassess its product strategy in North America to ensure it is offering customers a range of vehicles with flexible powertrain options to best meet their needs," said a statement from company spokesperson Jodi Tinson, which added that the pause "does not change our previously announced investment plans for Brampton." Automotive News first reported on the work stoppage.

Other automakers' product plans also appear to be in flux, including Ford Motor Co., which has delayed the launch of next-generation gas and hybrid F-150 pickups, according to AutoForecast Solutions, which tracks vehicle production and launches. It had the vehicle set to begin production in calendar year 2027, but has moved to 2028.

At Stellantis, Brampton previously built the Dodge Charger and Challenger, as well as the Chrysler 300, before plant production ended in late 2023 and workers were laid off. Since then, the automaker has been retooling the facility in preparation for the new Compass. Stellantis in 2022 announced $2.8 billion worth of investments to overhaul both its Brampton and Windsor assembly plants and expand a research center, upgrades that the company described as a key part of its electrification push.

The current generation of the Compass debuted in 2016 and has seen several updates over the years, and it is currently Jeep's most affordable vehicle in the United States since the departure of the Renegade.

 

The next-generation Compass is set to be build on the STLA Medium platform that can accommodate both electrified and gas-powered powertrains. The automaker previously pledged that the new Compass "will offer various multi-energy propulsion systems." A European version of the SUV built in Melfi, Italy, is scheduled to debut later this year with North American and other global availability in 2026, but that timeline may now move back.

At Ford, meanwhile, spokesperson Mike Levine declined to discuss the F-150 delay, first reported by Crain's Detroit Business: "We don't comment on speculation about future product."

The pickup's delay comes as a number of internal combustion engine product lifespans are being expanded as automakers push back launches of electric vehicles by a year or more, said Sam Fiorani, AutoForecast's vice president of global vehicle forecasting. He declined to specify other models that have been delayed.

"They need to keep ICE on the market," he said. "The high-volume EVs are seeing their numbers being dropped."

EV sales have not kept up with expectations as customers remain wary of their pricing, range, charging speeds and electrical grid reliability. Ford is set to launch a next-generation electric F-Series truck in 2027 at its new BlueOval City assembly plant in Tennessee. AutoForecast is predicting lower volumes out of the plant of 70,000 to 75,000 vehicles annually.

As a result of these trends, Fiorani said automakers are having to invest in their ICE vehicles and may need more time to step up engineering of next-generation models.


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